The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
WASHINGTON, July 14 -- The American Insurance Association issued the following news release:
The American Insurance Association (AIA) is expressing concern in regard to two resolutions adopted by the National Conference of Insurance Legislators (NCOIL) at its Summer 2014 Meeting. AIA believes that the resolutions addressing insurance capital standards (ICS) and trade could result in greater disunity among the various U.S. and non-U.S. regulators and other stakeholders involved in developing these regulatory initiatives. AIA opposed both resolutions.
"Adoption of these resolutions is premature and may weaken NCOIL's ability to effectively engage with the U.S. and global regulatory community," said Joe DiGiovanni, senior vice president of state affairs for AIA. "Both resolutions were adopted without undergoing the standard 30-day review period, which resulted in a rushed process."
"The capital standards resolution, "Regarding States' Response to International Proposals for Insurer Solvency Regulation and Global Insurance Capital Standard," fails to mention the ongoing implementation efforts by the Federal Reserve, required by the Dodd-Frank Act, to develop a differentiated capital standard for insurers organized as depository institutions or designated as systemically important financial institutions (SIFIs) by the Financial Stability Oversight Council ," said DiGiovanni. "Nor does it acknowledge the longstanding and deep engagement of the NAIC and commissioners at the international level in the work of the IAIS. It assumes the IAIS capital standards discussions will yield a product that cannot accommodate the U.S. approach to capital, yet the ICS discussions are just beginning."
The "Resolution Concerning Principles of State Sovereignty in International Trade" expresses support for involvement by the states in ongoing and future international trade agreement negotiations. The trade resolution voices concern over the transparency of negotiations regarding the Transatlantic Trade and Investment Partnership (TTIP), Trans-Pacific Partnership (TPP), and Trade in Services Agreement (TISA).
"The resolution fails to recognize measures that protect the role of states in regulation, as well as regulatory safeguards that are in all U.S. trade agreements, and ignores the enormous benefits of trade agreements to the U.S. insurance sector," said DiGiovanni. "We hope that NCOIL will take steps to engage in a more constructive manner on international trade issues in the future."
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